Miami, Fl, US – The Miami real estate market continues to strengthen compared to last year, the homes and condo/apartment prices are stabilizing and more buyers are acquiring properties in Miami.
The sales of single family homes increased 12% compared to august 2009 and 59% in condo/apartments.
The median price for a single family home in Miami decreased 6% to $182.000 compared to 2009 and the condominiums median price in august was $104.000, down 28% from last year.
Days in the market and inventory levels decreased, and this is a good sign that shows that the market it’s getting strong again. Inventory dropped 6% compared to last year and days in the market decreased 16.7% to 92 for single family homes and 19.3% for condominiums to 103 days, according to the Miami Association of Realtors.
Source: http://www.webwire.com/ViewPressRel.asp?aId=123981
The Criscitos has been selling South Florida luxury and commercial real estate for over a decade and has sold over $1 billion dollars of property. They work as a multi-lingual team speaking english, Spanish, Italian and Portuguese. They carved out a niche as a leading boutique real estate company with two distinct divisions -residential and commercial- both personally overseeing by Marcela and Anthony Criscito.
Showing posts with label South florida market. Show all posts
Showing posts with label South florida market. Show all posts
Wednesday, September 29, 2010
Friday, September 24, 2010
Active Miami-Dade home-sale market bucking national trend
Since a federal tax break expired June 30, home sales have fallen 20.9 percent in Phoenix, 32.5 percent in Las Vegas, 19.9 percent in San Diego, and even 25 percent in Austin's recession-resistant housing market.
But in Miami-Dade, which continues to battle massive amounts of foreclosures, a bloated inventory of homes and high unemployment, sales have outperformed the national market for the past two months, ignoring the post-tax credit hangover. Since June, Miami-Dade combined sales are flat, according to data from the Florida Association of Realtors.
Miami-Dade's numbers stack up well next to national numbers, an indication that falling prices and international interest in South Florida real estate are sustaining sales.
Nationally, August sales rose slightly from July's 15-year lows, but were still down 19 percent year-over-year and 22.5 percent since June, the National Association of Realtors said.
The federal homebuyer's tax credit expired in April, so most markets saw a bump in sales in May and June, as buyers closed sales before the program's original June 30 deadline.
Miami-Dade sales of existing homes, condos and townhouses increased 31.3 percent in August compared to the same month of 2009, figures released Thursday show.
The picture is not as pretty in Broward County, where year-over-year existing sales slumped 11.6 percent in August for all home types, and sales have slipped 18.7 percent since June.
Comparing South Florida to some of the headline markets in the most troubled states -- Nevada, California and Arizona -- gives a more nuanced picture of the factors that have distinguished the Miami area from the rest of the country.
``Miami hit its peak in the fourth quarter of 2005, the other markets didn't hit their peaks until the fourth quarter of 2007,'' said Peter Zalewski, a principal at Bal Harbour-based consultancy Condo Vultures.
``In Miami, the prices have been cut since 2009. If you go to Southern California, you're not going to see those price cuts yet.''
As home prices rise nationally, South Florida continues to see its prices slashed, fueling the appetite of bargain-hungry international buyers and local investors.
In August, condo prices fell 28 percent to $104,800 in Miami-Dade, and single-family home prices fell 6 percent to $182,900. In a lending environment where many struggle to obtain loans for the discounted properties, cash-wielding investors have ramped up their activity, propping up sales.
Source: http://www.miamiherald.com/2010/09/24/v-fullstory/1839897/active-miami-dade-home-sale-market.html
By TOLUSE OLORUNNIPA
tolorunnipa@MiamiHerald.com
But in Miami-Dade, which continues to battle massive amounts of foreclosures, a bloated inventory of homes and high unemployment, sales have outperformed the national market for the past two months, ignoring the post-tax credit hangover. Since June, Miami-Dade combined sales are flat, according to data from the Florida Association of Realtors.
Miami-Dade's numbers stack up well next to national numbers, an indication that falling prices and international interest in South Florida real estate are sustaining sales.
Nationally, August sales rose slightly from July's 15-year lows, but were still down 19 percent year-over-year and 22.5 percent since June, the National Association of Realtors said.
The federal homebuyer's tax credit expired in April, so most markets saw a bump in sales in May and June, as buyers closed sales before the program's original June 30 deadline.
Miami-Dade sales of existing homes, condos and townhouses increased 31.3 percent in August compared to the same month of 2009, figures released Thursday show.
The picture is not as pretty in Broward County, where year-over-year existing sales slumped 11.6 percent in August for all home types, and sales have slipped 18.7 percent since June.
Comparing South Florida to some of the headline markets in the most troubled states -- Nevada, California and Arizona -- gives a more nuanced picture of the factors that have distinguished the Miami area from the rest of the country.
``Miami hit its peak in the fourth quarter of 2005, the other markets didn't hit their peaks until the fourth quarter of 2007,'' said Peter Zalewski, a principal at Bal Harbour-based consultancy Condo Vultures.
``In Miami, the prices have been cut since 2009. If you go to Southern California, you're not going to see those price cuts yet.''
As home prices rise nationally, South Florida continues to see its prices slashed, fueling the appetite of bargain-hungry international buyers and local investors.
In August, condo prices fell 28 percent to $104,800 in Miami-Dade, and single-family home prices fell 6 percent to $182,900. In a lending environment where many struggle to obtain loans for the discounted properties, cash-wielding investors have ramped up their activity, propping up sales.
Source: http://www.miamiherald.com/2010/09/24/v-fullstory/1839897/active-miami-dade-home-sale-market.html
By TOLUSE OLORUNNIPA
tolorunnipa@MiamiHerald.com
Monday, September 20, 2010
Miami home sellers cut prices by $123.8M in August
Nearly one in five home sellers in the city of Miami reduced prices in August, according to a report released Wednesday by real estate search firm Trulia.com. The average reduction was 10 percent, according to the report, which tracked the nation's 50 largest cities.
Miami recorded a total of $123.8 million in home price reductions in August, the report found.
Nationally, price reductions have increased for three months in a row, totaling 26 percent of all properties for sale. Home sellers have slashed prices by more than $29 billion since July, Trulia found. The average reduction nationally was 10 percent, or $33,892, in August.
Trulia's report does not include foreclosure properties, which make up less than 10 percent of properties listed for sale in South Florida.
Source: http://www.miamiherald.com/2010/09/15/1825376/miami-home-sellers-cut-prices.html
Miami recorded a total of $123.8 million in home price reductions in August, the report found.
Nationally, price reductions have increased for three months in a row, totaling 26 percent of all properties for sale. Home sellers have slashed prices by more than $29 billion since July, Trulia found. The average reduction nationally was 10 percent, or $33,892, in August.
Trulia's report does not include foreclosure properties, which make up less than 10 percent of properties listed for sale in South Florida.
Source: http://www.miamiherald.com/2010/09/15/1825376/miami-home-sellers-cut-prices.html
Wednesday, September 15, 2010
Trulia: Miami homeowners continue to slash prices
Eighteen percent of homes for sale in Miami saw their prices slashed in August by an average of 12 percent, according to data from real estate website Trulia.com.
Still, Miami actually ranks fairly low – at No. 49 on the list of 50 cities – with $123.8 million in price reductions. It was ahead of only Detroit, which saw 16 percent of homeowners slashing prices – though they did cut deeper, at 25 percent.
Nationwide, 26 percent of homeowners cut prices to account for a total reduction of more than $29 billion nationwide. The average national price reduction was 10 percent.
Despite the increase of price reduction figures to historic levels, 24 of the 50 largest U.S. cities held steady or dropped, compared with data from the previous month, according to Trulia.
"On the surface, the latest price reduction data carries with it conflicting messages," Trulia co-founder and CEO Pete Flint said in a news release. "Nationwide, sellers continue to slash prices, and this is a worrisome trend. However, we're seeing gradual improvement in many U.S. cities – several for consecutive months. What this shows us is that, while we're in for a long climb to bring stability back to the housing market and while it's going to take time, that climb appears to at least be under way in some parts of the country."
Meanwhile, the Mortgage Bankers Association reported Wednesday that, for the week ended Sept. 10, mortgage loan application volume fell 8.9 percent from the previous week on a seasonally adjusted basis. The number of refinancings fell 10.8 percent, despite the fact that mortgage rates fell.
The average interest rate for 30-year, fixed-rate mortgages decreased to 4.47 percent from 4.5 percent.
The average interest rate for 15-year, fixed-rate mortgages decreased to 3.96 percent from 4 percent.
The average interest rate for one-year, adjustable rate mortgages decreased to 6.89 percent from 7 percent.
Source: http://southflorida.bizjournals.com/southflorida/stories/2010/09/13/daily28.html
Still, Miami actually ranks fairly low – at No. 49 on the list of 50 cities – with $123.8 million in price reductions. It was ahead of only Detroit, which saw 16 percent of homeowners slashing prices – though they did cut deeper, at 25 percent.
Nationwide, 26 percent of homeowners cut prices to account for a total reduction of more than $29 billion nationwide. The average national price reduction was 10 percent.
Despite the increase of price reduction figures to historic levels, 24 of the 50 largest U.S. cities held steady or dropped, compared with data from the previous month, according to Trulia.
"On the surface, the latest price reduction data carries with it conflicting messages," Trulia co-founder and CEO Pete Flint said in a news release. "Nationwide, sellers continue to slash prices, and this is a worrisome trend. However, we're seeing gradual improvement in many U.S. cities – several for consecutive months. What this shows us is that, while we're in for a long climb to bring stability back to the housing market and while it's going to take time, that climb appears to at least be under way in some parts of the country."
Meanwhile, the Mortgage Bankers Association reported Wednesday that, for the week ended Sept. 10, mortgage loan application volume fell 8.9 percent from the previous week on a seasonally adjusted basis. The number of refinancings fell 10.8 percent, despite the fact that mortgage rates fell.
The average interest rate for 30-year, fixed-rate mortgages decreased to 4.47 percent from 4.5 percent.
The average interest rate for 15-year, fixed-rate mortgages decreased to 3.96 percent from 4 percent.
The average interest rate for one-year, adjustable rate mortgages decreased to 6.89 percent from 7 percent.
Source: http://southflorida.bizjournals.com/southflorida/stories/2010/09/13/daily28.html
Friday, September 3, 2010
Miami-Dade Pending Home Sales Continue to Rise
Total pending home sales - including single-family homes and condominiums - in Miami-Dade County increased 33.7 percent in August 2010 compared to August 2009, from 7,570 to 10,119, and increased .06 percent, from 10,113 to 10,119, compared to the previous month according to the MIAMI Association of REALTORS and the Southeast Florida Multiple Listing Service (SEFMLS).
The South Florida real estate market continues to strengthen, primarily due to the highest concentration in the U.S. of international buyers, contrary to national trends, which show near-term home sales noticeably lower since the expiration of the homebuyer tax credit.
Pending sales of condominiums in Miami-Dade County continue to perform better than that of single-family homes.
In August, condominium pending sales increased 49.7 percent compared to the previous year, from 3,848 to 5,759 and increased 0.7 percent, from 5,720 the previous month. Pending sales of single-family homes in August increased 17.1 percent from the previous year, from 3,722 to 4,360, and decreased a slight 0.8 percent from the previous month when pending sales totaled 4,393, showing a preference for condos in August.
The South Florida real estate market continues to strengthen, primarily due to the highest concentration in the U.S. of international buyers, contrary to national trends, which show near-term home sales noticeably lower since the expiration of the homebuyer tax credit.
Pending sales of condominiums in Miami-Dade County continue to perform better than that of single-family homes.
In August, condominium pending sales increased 49.7 percent compared to the previous year, from 3,848 to 5,759 and increased 0.7 percent, from 5,720 the previous month. Pending sales of single-family homes in August increased 17.1 percent from the previous year, from 3,722 to 4,360, and decreased a slight 0.8 percent from the previous month when pending sales totaled 4,393, showing a preference for condos in August.
Thursday, August 5, 2010
For South Florida Real Estate Market, a hopeful sign
South Florida's housing sector asserted its independence from national trends in July as a key measure of the real estate market improved year-over-year, with the region's international buyers and still-drooping prices propping up the local housing market.
In July, pending home sales in Miami-Dade County stood at 10,113, up 40.5 percent from July of 2009, according to figures released Tuesday by the Miami Realtors. In Broward, pending sales stood at 7,830 in July, up 25.4 percent from a year earlier.
Pending home sales refer to the number of housing contracts that have been signed, and offer an early indicator of sales activity because typical sales have a one- to two-month lag between a sales contract and a completed deal.
South Florida sizes up well when compared to the national picture, where the pending home sales index hit a record low 75.7 in June, according to the National Association of Realtors. It was the second monthly falloff after the April 30 deadline to enter the federal homebuyer tax credit program, with June's pending sales down nearly 19 percent from the same month a year earlier.
The local market hasn't been completely immune from the post-tax-credit slump. In the past three months, pending home sales are down 3.2 percent in Miami-Dade and down 5.1 percent in Broward.
``We are encouraged by the statistics for pending home sales in the South Florida real estate market even after the expiration of the homebuyer tax credit,'' Jack H. Levine, chairman of the board of the Miami Realtors, said in a statement. ``While the number of pending sales has dropped slightly month-over-month, they are still significantly higher than they were a year ago.''
With financing still difficult to obtain, all-cash buyers and deep discounts on distressed properties are propping up sales, said Peter Zalewski, a principal at Bal-Harbour-based Condo Vultures.
About 60 percent of South Florida sales have gone to foreign buyers, who are more likely to pay with cash and were never eligible for the tax credit.
Additionally, more than half of recent sales in Miami-Dade and Broward counties involve short sales or bank-owned home sales. In the last 12 months, the number of bank-owned condos and single-family homes sold has more than doubled.
A short sale occurs when a home is sold for a price that is less than the value of the outstanding mortgage. In what has become a notoriously lengthy process, both the seller and the bank must agree to the price.
Banks have recently become more willing to allow sellers to pursue short sales, which now account for one in four South Florida sales.
There were 944 short sales in Miami-Dade and Broward in June, up from only 379 a year earlier, according to analysis by Esslinger-Wooten-Maxwell Realty.
That's a reason to be cautious while interpreting pending homes sales data in a market like South Florida's, said Doug DeWitt, Miami-based real estate broker.
Many short sale contracts are rejected by the bank after a seller agrees to sell for a price below what they owe, meaning those pending sales don't lead to closings.
Additionally, because short sales take months to process, many remain in the ``pending'' stage longer than normal, boosting pending sales numbers for multiple months.
In Miami-Dade County, more than half of the pending single-family home sales on the Multiple Listing Service are short sales, said DeWitt.
``I'd say at least half of those are not going to close,'' he said. ``I would say stick to the actual closed sales to make the true comparison, because there's a lot of different ways that these pending sales can fall through.''
The increasing number of short sales and bank-owned properties coming to market has put downward pressure on prices in South Florida, said Jack McCabe, chief executive of McCabe Research & Consulting in Deerfield Beach. In June, median prices of existing homes stood at $203,300 in Miami-Dade, down about 4 percent from the same month a year earlier. Median existing condo prices, at $128,000, were down about 9 percent in Miami-Dade.
``When you're in a neighborhood that has two foreclosures and a short sale that are priced $50,000 or $75,000 below what you thought you could get for your home, you do not set the barometer for the other [home] prices,'' McCabe said. ``They set the prices for you.''
Tejus Karia, who has been trying to sell his Davie townhouse for eight months, has cut prices multiple times.
He has slashed the price on the three-bedroom, from $185,000 to $165,000 to draw in buyers but didn't get a single offer. He recently decided to rent it instead.
Zalewski said many sellers are coming to accept the new, lower pricing levels being dictated by the market, and are acting accordingly.
According to a report by Trulia, one in five home sellers in the Miami area slashed prices last month, with an average reduction of 13 percent.
Karia said the main obstacle for most of his buyers was the lack of financing: ``Nobody could come up with the money. The banks aren't lending money, and that's going to leave a lot of these houses in limbo.''
Source: http://www.miamiherald.com/2010/08/03/v-fullstory/1760066/for-s-fla-market-a-hopeful-sign.html
By TOLUSE OLORUNNIPA
tolorunnipa@MiamiHerald.com
In July, pending home sales in Miami-Dade County stood at 10,113, up 40.5 percent from July of 2009, according to figures released Tuesday by the Miami Realtors. In Broward, pending sales stood at 7,830 in July, up 25.4 percent from a year earlier.
Pending home sales refer to the number of housing contracts that have been signed, and offer an early indicator of sales activity because typical sales have a one- to two-month lag between a sales contract and a completed deal.
South Florida sizes up well when compared to the national picture, where the pending home sales index hit a record low 75.7 in June, according to the National Association of Realtors. It was the second monthly falloff after the April 30 deadline to enter the federal homebuyer tax credit program, with June's pending sales down nearly 19 percent from the same month a year earlier.
The local market hasn't been completely immune from the post-tax-credit slump. In the past three months, pending home sales are down 3.2 percent in Miami-Dade and down 5.1 percent in Broward.
``We are encouraged by the statistics for pending home sales in the South Florida real estate market even after the expiration of the homebuyer tax credit,'' Jack H. Levine, chairman of the board of the Miami Realtors, said in a statement. ``While the number of pending sales has dropped slightly month-over-month, they are still significantly higher than they were a year ago.''
With financing still difficult to obtain, all-cash buyers and deep discounts on distressed properties are propping up sales, said Peter Zalewski, a principal at Bal-Harbour-based Condo Vultures.
About 60 percent of South Florida sales have gone to foreign buyers, who are more likely to pay with cash and were never eligible for the tax credit.
Additionally, more than half of recent sales in Miami-Dade and Broward counties involve short sales or bank-owned home sales. In the last 12 months, the number of bank-owned condos and single-family homes sold has more than doubled.
A short sale occurs when a home is sold for a price that is less than the value of the outstanding mortgage. In what has become a notoriously lengthy process, both the seller and the bank must agree to the price.
Banks have recently become more willing to allow sellers to pursue short sales, which now account for one in four South Florida sales.
There were 944 short sales in Miami-Dade and Broward in June, up from only 379 a year earlier, according to analysis by Esslinger-Wooten-Maxwell Realty.
That's a reason to be cautious while interpreting pending homes sales data in a market like South Florida's, said Doug DeWitt, Miami-based real estate broker.
Many short sale contracts are rejected by the bank after a seller agrees to sell for a price below what they owe, meaning those pending sales don't lead to closings.
Additionally, because short sales take months to process, many remain in the ``pending'' stage longer than normal, boosting pending sales numbers for multiple months.
In Miami-Dade County, more than half of the pending single-family home sales on the Multiple Listing Service are short sales, said DeWitt.
``I'd say at least half of those are not going to close,'' he said. ``I would say stick to the actual closed sales to make the true comparison, because there's a lot of different ways that these pending sales can fall through.''
The increasing number of short sales and bank-owned properties coming to market has put downward pressure on prices in South Florida, said Jack McCabe, chief executive of McCabe Research & Consulting in Deerfield Beach. In June, median prices of existing homes stood at $203,300 in Miami-Dade, down about 4 percent from the same month a year earlier. Median existing condo prices, at $128,000, were down about 9 percent in Miami-Dade.
``When you're in a neighborhood that has two foreclosures and a short sale that are priced $50,000 or $75,000 below what you thought you could get for your home, you do not set the barometer for the other [home] prices,'' McCabe said. ``They set the prices for you.''
Tejus Karia, who has been trying to sell his Davie townhouse for eight months, has cut prices multiple times.
He has slashed the price on the three-bedroom, from $185,000 to $165,000 to draw in buyers but didn't get a single offer. He recently decided to rent it instead.
Zalewski said many sellers are coming to accept the new, lower pricing levels being dictated by the market, and are acting accordingly.
According to a report by Trulia, one in five home sellers in the Miami area slashed prices last month, with an average reduction of 13 percent.
Karia said the main obstacle for most of his buyers was the lack of financing: ``Nobody could come up with the money. The banks aren't lending money, and that's going to leave a lot of these houses in limbo.''
Source: http://www.miamiherald.com/2010/08/03/v-fullstory/1760066/for-s-fla-market-a-hopeful-sign.html
By TOLUSE OLORUNNIPA
tolorunnipa@MiamiHerald.com
Monday, June 28, 2010
Five States Get U.S. Funds to Aid Homeowners
By DARRELL A. HUGHES
The U.S. Treasury Department said Wednesday it had approved five states' plans to aid homeowners in the hope of thwarting foreclosures in communities hit hard by the recession.
State housing agencies in Arizona, California, Florida, Michigan and Nevada will receive a total of $1.5 billion from the Obama administration's "Hardest Hit Fund."
"These states have identified a number of innovative programs that will make a real difference in the lives of many homeowners facing foreclosure," said Herbert Allison Jr., Treasury assistant secretary for financial stability.
Proposals approved Wednesday include programs to help struggling homeowners who owe more than their homes are worth by reducing the principal owed on their loans; to help unemployed or underemployed homeowners make mortgage payments; to facilitate the settlement of second liens, short sales or deeds in lieu of foreclosure; and help with payments in arrears.
The fund—dubbed the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets—was established in February. It aims to provide assistance to states with the highest shares of their populations living in counties in which the unemployment rate exceeded 12% in 2009.
According to Treasury, the states approved to receive aid experienced a 20% or greater decline in average housing prices.
Arizona is set to receive $125.1 million, California $699.6 million, Florida $418 million, Michigan $154.5 million and Nevada $102.8 million.
Five other hard-hit states have plans that are pending. If the plans are approved, those states could get a total of $600 million: North Carolina ($159 million), Ohio ($172 million), Oregon ($88 million), Rhode Island ($43 million) and South Carolina ($138 million).
Treasury officials said they hoped to have decisions on those states' plans by August.
Source: http://online.wsj.com/article/SB10001424052748704629804575325101835373456.html?mod=WSJ_RealEstate_LeftTopNews
—Nathan Becker contributed to this article.
Write to Darrell A. Hughes at darrell.hughes@dowjones.com
The U.S. Treasury Department said Wednesday it had approved five states' plans to aid homeowners in the hope of thwarting foreclosures in communities hit hard by the recession.
State housing agencies in Arizona, California, Florida, Michigan and Nevada will receive a total of $1.5 billion from the Obama administration's "Hardest Hit Fund."
"These states have identified a number of innovative programs that will make a real difference in the lives of many homeowners facing foreclosure," said Herbert Allison Jr., Treasury assistant secretary for financial stability.
Proposals approved Wednesday include programs to help struggling homeowners who owe more than their homes are worth by reducing the principal owed on their loans; to help unemployed or underemployed homeowners make mortgage payments; to facilitate the settlement of second liens, short sales or deeds in lieu of foreclosure; and help with payments in arrears.
The fund—dubbed the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets—was established in February. It aims to provide assistance to states with the highest shares of their populations living in counties in which the unemployment rate exceeded 12% in 2009.
According to Treasury, the states approved to receive aid experienced a 20% or greater decline in average housing prices.
Arizona is set to receive $125.1 million, California $699.6 million, Florida $418 million, Michigan $154.5 million and Nevada $102.8 million.
Five other hard-hit states have plans that are pending. If the plans are approved, those states could get a total of $600 million: North Carolina ($159 million), Ohio ($172 million), Oregon ($88 million), Rhode Island ($43 million) and South Carolina ($138 million).
Treasury officials said they hoped to have decisions on those states' plans by August.
Source: http://online.wsj.com/article/SB10001424052748704629804575325101835373456.html?mod=WSJ_RealEstate_LeftTopNews
—Nathan Becker contributed to this article.
Write to Darrell A. Hughes at darrell.hughes@dowjones.com
Thursday, April 15, 2010
Provisions expected to spark South Florida market
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Two bills that supporters say will help bolster Florida’s condo market are one step away from becoming law.
House Bill 561 and Senate Bill 840 have been approved by committees that needed to review the bills before they are sent to the Senate and House for a final vote.
A key element of both bills: Bulk buyers of condominiums won’t be held liable for construction defects or other problems related to the project’s original developer.
Industry experts say this will help move unsold units in many new or converted condo projects in the region.
State laws put developer liabilities onto any investor that acquires multiple units in a project.
“Successor developer liability is a huge concern for any bulk buyer because they are stepping into the shoes of the developer,” said David Metalonis, a Colliers Abood Wood-Fay broker who represents sellers and buyers in bulk condo deals.
“[Buyers] are extremely hesitant to step into to those shoes and that risk is factored in the price.”
Peter Zalewski of CondoVultures said if the provision passes, it could bring more institutional buyers into the bulk condo market.
“I don’t think it’s going to have that much of an impact on private equity investors — they are the ones that have been closing bulk deals — because their mentality is no judge would rule against them and call them a developer,” Zalewski said.
“But the institutional investors — those who want to spend a minimum of $25 million, the hedge funds, the pensions funds — tend to be more focused on fundamentals. I’ve talked to many hedge funds that want to get in the game, but there is no way they can overcome the liability issues. That is why you haven’t seen institutional [bulk condo] deals.”
If they become law, the bills could also be an incentive for institutional lenders to start financing bulk condo deals, he said. The additional lending options and the potential influx of institutional buyers into the condo market could also increase the price of bulk deals by as much as 15 percent, said Zalewski, a former reporter for the Daily Business Review.
Sen. Eleanor Sobel, D-Hollywood, said she is pleased Senate Bill 840 “has soared through its three committees with unanimous ‘yes’ votes.”
“I am confident that the Senate will act quickly to approve this good bill,” she said in a prepared statement. “SB 840 has bipartisan support and provides an immediate stimulus to Florida’s condominium market.”
HB 561 and SB 840 are two of a number of bills that included “distressed buyer language” to relieve bulk buyers of liability in this years legislative session.
“A lot of lenders, developers and associations want it to pass,” said Donna Berger, a community association attorney who helped draft HB 561 and other related bills.
Rep. Maria Lorts Sachs, D-Delray Beach, who co-sponsored HB 561, said it is essential to the economic recovery of South Florida.
“Sometimes we have to take to steps back in order to make things fit to this economy,” she said. “If that means going back on laws that we passed a couple years ago, so be it. We need to reflect the needs of this economy and do whatever it takes to bring back our market and give relief to unit owners who are suffering.”
The house bill would block condo associations from requiring individual owners to purchase casualty insurance. It also extends to 2019 the deadline for condo associations to add sprinkler systems to older buildings. The previous deadline was 2014.
Buildings with four stories or fewer would be exempt from the state-mandated retrofitting. Previously all buildings were subject to having sprinklers installed.
“The main goal of 561 is to provide more relief for struggling associations,” Berger said.
Berger said that retrofitting costs can average $10,000 in special assessments for each unit owners, depending on the size of the development.
Opponents of the bill include fire marshals and firefighters, inspection industry groups and the sprinkler industry. They claim the retrofitting of sprinklers is a safety issue.
Last year, Gov. Charlie Crist vetoed a similar bill and has said he would likely do the same this year for any bill that tried to push back the deadline to add fire sprinklers.
Berger said she met with the governor several weeks ago regarding the issue.
“I explained to him this is a billion-dollar issue for the sprinkler industry and that the state of Florida is the only state that did not make provisions for existing buildings” to be grandfathered in, she said. “It’s our strong hope that we opened his eyes.”
Source: http://www.dailybusinessreview.com/news.html?news_id=61750
Polyana da Costa can be reached at (561) 820-2065.
Two bills that supporters say will help bolster Florida’s condo market are one step away from becoming law.
House Bill 561 and Senate Bill 840 have been approved by committees that needed to review the bills before they are sent to the Senate and House for a final vote.
A key element of both bills: Bulk buyers of condominiums won’t be held liable for construction defects or other problems related to the project’s original developer.
Industry experts say this will help move unsold units in many new or converted condo projects in the region.
State laws put developer liabilities onto any investor that acquires multiple units in a project.
“Successor developer liability is a huge concern for any bulk buyer because they are stepping into the shoes of the developer,” said David Metalonis, a Colliers Abood Wood-Fay broker who represents sellers and buyers in bulk condo deals.
“[Buyers] are extremely hesitant to step into to those shoes and that risk is factored in the price.”
Peter Zalewski of CondoVultures said if the provision passes, it could bring more institutional buyers into the bulk condo market.
“I don’t think it’s going to have that much of an impact on private equity investors — they are the ones that have been closing bulk deals — because their mentality is no judge would rule against them and call them a developer,” Zalewski said.
“But the institutional investors — those who want to spend a minimum of $25 million, the hedge funds, the pensions funds — tend to be more focused on fundamentals. I’ve talked to many hedge funds that want to get in the game, but there is no way they can overcome the liability issues. That is why you haven’t seen institutional [bulk condo] deals.”
If they become law, the bills could also be an incentive for institutional lenders to start financing bulk condo deals, he said. The additional lending options and the potential influx of institutional buyers into the condo market could also increase the price of bulk deals by as much as 15 percent, said Zalewski, a former reporter for the Daily Business Review.
Sen. Eleanor Sobel, D-Hollywood, said she is pleased Senate Bill 840 “has soared through its three committees with unanimous ‘yes’ votes.”
“I am confident that the Senate will act quickly to approve this good bill,” she said in a prepared statement. “SB 840 has bipartisan support and provides an immediate stimulus to Florida’s condominium market.”
HB 561 and SB 840 are two of a number of bills that included “distressed buyer language” to relieve bulk buyers of liability in this years legislative session.
“A lot of lenders, developers and associations want it to pass,” said Donna Berger, a community association attorney who helped draft HB 561 and other related bills.
Rep. Maria Lorts Sachs, D-Delray Beach, who co-sponsored HB 561, said it is essential to the economic recovery of South Florida.
“Sometimes we have to take to steps back in order to make things fit to this economy,” she said. “If that means going back on laws that we passed a couple years ago, so be it. We need to reflect the needs of this economy and do whatever it takes to bring back our market and give relief to unit owners who are suffering.”
The house bill would block condo associations from requiring individual owners to purchase casualty insurance. It also extends to 2019 the deadline for condo associations to add sprinkler systems to older buildings. The previous deadline was 2014.
Buildings with four stories or fewer would be exempt from the state-mandated retrofitting. Previously all buildings were subject to having sprinklers installed.
“The main goal of 561 is to provide more relief for struggling associations,” Berger said.
Berger said that retrofitting costs can average $10,000 in special assessments for each unit owners, depending on the size of the development.
Opponents of the bill include fire marshals and firefighters, inspection industry groups and the sprinkler industry. They claim the retrofitting of sprinklers is a safety issue.
Last year, Gov. Charlie Crist vetoed a similar bill and has said he would likely do the same this year for any bill that tried to push back the deadline to add fire sprinklers.
Berger said she met with the governor several weeks ago regarding the issue.
“I explained to him this is a billion-dollar issue for the sprinkler industry and that the state of Florida is the only state that did not make provisions for existing buildings” to be grandfathered in, she said. “It’s our strong hope that we opened his eyes.”
Source: http://www.dailybusinessreview.com/news.html?news_id=61750
Polyana da Costa can be reached at (561) 820-2065.
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